Vancouver city hall sells $175 million bond at 4.43% all-in borrowing cost
The 10-year sinking fund debenture settles Oct. 30 and is repaid in October 2036, with interest of about $7.61 million a year.
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Vancouver city hall sold a $175 million 10-year municipal bond on Oct. 22, 2026, at a fixed annual interest rate of 4.35 per cent. Investor demand exceeded the amount available. The overall borrowing cost, including bank fees, is 4.43 per cent.
The bond is a sinking fund debenture, a loan from investors that is repaid with interest. It settles Oct. 30 and is due in October 2036. Interest of about $7.61 million a year is paid twice annually. The money is for eligible capital projects, which include roads, community and recreational facilities, parks, utilities and other infrastructure. The city says debt-servicing costs are covered by annual operating budgets, and money is set aside each year in a dedicated sinking fund for repayment.
Moody's rates the city Aaa and S&P Global Ratings rates it AAA, both with a stable outlook. Council approved borrowing of up to $175 million in July 2026. The lead underwriter is BMO Capital Markets, with CIBC World Markets and National Bank Financial as co-leads.
City staff said the 10-year term was favourable, and that 20- to 30-year terms would be more expensive. Market conditions cited include persistent inflation, Bank of Canada rates that may stay elevated longer, and more bond supply competing for investors.
The facts
How much did Vancouver city hall raise in its bond sale?
Vancouver city hall sold a $175 million 10-year municipal bond on October 22, 2026. Investor demand exceeded the amount available.
What interest rate does Vancouver's 10-year bond carry?
Vancouver's 10-year municipal bond carries a fixed annual interest rate of 4.35 per cent. Including bank fees, the city's overall borrowing cost is 4.43 per cent.
